Tag Archives: governments

Business

AAP government’s New Year gift, Electricity charges reduced by up to 50 percent…


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Delhi Election 2025: The Aam Aadmi Party government of Delhi has given a big gift to the people of Delhi on the occasion of the New Year. According to the statement issued by the ‘AAP’ government, the surcharge on electricity bills has been reduced significantly just before the assembly elections. This will give great relief to the people and the electricity bill will also reduce.

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In fact, the rates of Power Purchase Adjustment Charge (PPAC) which were earlier 35.83 percent for BRPL, 38.12 percent for BYPL and 36.33 percent for TPDDL. Now it has been reduced to 18.19 percent, 13.63 percent and 20.52 percent respectively. After this reduction, the electricity bills of all consumers of Delhi will come down. Delhi Chief Minister Atishi also holds the power ministry. He said that this has been possible only because of the honest and people-friendly government of Aam Aadmi Party.

Chief Minister Atishi said that the Delhi government has been able to achieve this (electricity surcharge) only through proper management and pre-planning of the power supply chain. He also informed that in neighbouring cities like Noida and Gurugram, not only are the electricity rates high, but there are also frequent power cuts during the summer season. Whereas in Delhi, people enjoy 24-hour power supply and due to our policies, in many cases their electricity bills are also zero.

Chief Minister Atishi said that the Delhi government has always given priority to protecting consumers from increase in electricity tariffs. So that the electricity distribution companies (DISCOMs) follow the rules set by the Delhi Electricity Regulatory Commission (DERC). DERC, which is the only authorized body to impose Power Purchase Cost Adjustment Charge, works under its ‘Tariff Regulations 2017’. In this manual, all the details of the process, framework, approval, recovery and adjustment related to PPAC have been decided.

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Business

Tax Collection: Good news before the budget, government’s income from direct tax increased by 24%

Direct Tax Collection: Finance Minister Nirmala Sitharaman is going to present the budget on July 23. Before that, the tax collection figures have filled the government treasury…

The central government has received great good news before the full budget for the financial year 2024-25. Actually, the government is earning a lot from direct tax and so far this year, it has seen a growth of more than 24 percent. This has been revealed by the latest data.

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The figure reached close to Rs 5.75 lakh crore

According to the latest data released by the Central Board of Direct Taxes (CBDT) on Friday, the net direct tax collection has increased by 24.07 percent so far this year to Rs 5.74 lakh crore. This figure is till July 11, 2024. In the same period a year ago, the government had earned Rs 4.80 lakh crore from direct tax.

According to CBDT data, corporate tax has contributed Rs 2.1 lakh crore to this figure of net collection of direct tax. On the other hand, personal income tax has contributed Rs 3.46 lakh crore to the total collection. The personal income tax collection figure also includes the income from securities transaction tax i.e. STT.

Also Read: Vande Bharat: Vande Bharat’s first sleeper will run on this route! Know details instantly

This much was earned in the month of June

The government earned more than Rs 4.50 lakh crore from tax collection in the month of June alone. CBDT figures show that in the month of June, the government got a total of Rs 4.62 lakh crore from the collection of direct taxes. This figure is 20.99 percent more than the income from direct taxes in June 2023. The collections made during the month of June include corporate tax of Rs 1.8 lakh crore and personal income tax of Rs 2.81 lakh crore.

The figure had increased so much last year

Direct tax collection had given great relief to the government during the last financial year as well. During the entire financial year 2023-24, the government’s direct tax collection grew by 17.7 percent on an annual basis and the total figure stood at Rs 19.58 lakh crore. During the last financial year, the contribution of personal income tax was significant in this increase. The contribution of personal income tax in the total collection increased to 53.3 percent, while the contribution of corporate tax decreased to 46.5 percent.

The budget is going to come after a week and a half

This tax collection figure has come at a time when the government is going to present a new budget after about a week and a half from now. The new session of Parliament is starting from July 22 and on the second day of the session i.e. on July 23, Finance Minister Nirmala Sitharaman is going to present the full budget for the financial year 2024-25.

 

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Business

Within First Year of Its Inception, Goodveda Invests in Government’s Millet Revolution in India

New Delhi, twenty eighth June 2024: In a strategic transfer to align with the Indian authorities’s ‘Millet Revolution’ marketing campaign, Goodveda, a number one innovator in pure healthcare options devoted to bettering private well-being, inside its first 12 months of inception unveils its new vary of nutritious millet-based wholesome baked crunchies ‘Milletious’. With its first partnership with Barista at a pan India degree, the start-up is all set to carry in a outstanding change in the snacking habits of Indians. The wholesome snack vary of Goodveda aligns with the Government of India’s initiative to advertise millet consumption and revolutionize the nation’s dietary habits.

By making these nutritious snacks accessible at Barista places nationwide, Goodveda presents a wholesome snacking various and elevated accessibility of nutritious snacking for all espresso lovers, café patrons and health fans.

MILLET

“We are extraordinarily excited to be in line with our authorities’s Millet revolution, that’s paving the way in which for a more healthy way of life,” stated Abhishek Gaggneja, Founder of Goodveda. “We wish to be the flag bearers of holistic well-being. At Goodveda, we purpose to supply healthful, scrumptious snacking choices that helps each your well being and taste-buds. By partnering with Barista, we’re making it simpler for individuals to get pleasure from nutritious snacks on-the-go, complementing their favorite espresso moments.” 

The premium Millet primarily based wholesome baked crunchies are good for health-conscious customers looking for nutritious, light-weight, gluten-free with a low-glycaemic index, sugar-free, and preservative-free choices, constructed from healthful elements like Millets, Bajra flour, Jowar flour, and Wheat flour, the healthful snack that mixes conventional grains with irresistible style. For these trying to indulge with out compromising well being requirements, savour crunchies present an expensive deal with. 

‘Milletious‘ crunchies provide a tasty vary of baked crunchies in 4 flavourful, scrumptious, nutritious, and handy snacking choices of Gazab Garlic, Hotshot Chilli, Mad Masala, and Masoor Methi, catering to totally different style preferences whereas sustaining the well being advantages of millets. The delectable vary of Millet-based baked crunchies crafted to mix pleasure with wellness, for health-conscious customers of all ages, catering to the rising demand for more healthy way of life selections.

The Millet Crunchies can be found in 80 gm and 200 gm pack, and is wealthy in proteins, dietary fibre, and important minerals akin to iron and magnesium. Inherently, they’re a superb snack selection for everybody, together with these with particular dietary restrictions. These Millet Crunchies are baked, maida-free, preservative-free, and constructed from plant-based elements, making them appropriate for vegans and health-conscious customers.

Recognising the significance of millets, the wholesome snacks vary of ‘Milletious’ by Goodveda, units to redefine and revolutionize the realm of snacking by prioritizing well being, improved diet, and nice style.

Goodveda’s ‘Milletious’ crunchies are additionally accessible for buy on-line by www.goodveda.com.


Neel Achary

Finance

Real Estate Players Hails Budget 2023: Lauds Government's Move to Boost Infrastructure

Indias actual property fraternity has reacted positively to the Union Budget 2023 introduced by the Finance Minister on February 1st, 2023. The Union Budget for this 12 months was primarily geared toward boosting the Indian financial system and revitalising it.

Union Budget 2023-24

The actual property trade is optimistic in regards to the incentives and schemes that had been introduced within the finances for his or her sector and is trying to leverage them for elevated progress and improvement.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India), Ltd., stated, “The Finance Minister introduced that infrastructure and funding would be the governments third precedence, and capital expenditures will likely be elevated by 33% to speed up the countrys improvement. This elevated spending is anticipated to assist create extra jobs, spur financial progress, and create a extra affluent nation. Also, so as to convert cities from manholes to machine holes, an city infrastructure improvement fund of Rs 10000 crore will likely be put aside yearly for city improvement. This fund will assist improve India’s city residing surroundings moreover modernising Indias cities and cities.”

Among essentially the most vital actual property bulletins on this years Union Budget is the governments determination to improve the Pradhan Mantri Awas Yojana fund allocation to Rs 79,000 crores by 66%.

Applauding this transfer, Santosh Agarwal, CFO and Executive Director, Alpha Corp, stated, “With visionary progress within the inexpensive housing sector, FM has introduced the allocation elevated to 79,000 crores beneath PMAY. This will present a much-needed impetus to the housing demand within the inexpensive phase. On the opposite hand, the emphasis given to the infrastructure-capex would assist the potential tier II areas with alternatives for all by way of employment, progress, and sustainable residing.”

Additionally, a brand new annual finances for the Urban Infrastructure Development Fund has been introduced by the federal government to encourage Tier II and tier III cities to implement city planning reforms by specializing in the infrastructure phase. This fund can be utilized to construct sustainable infrastructure in these cities.

Atul Banshal, Director Finance, Omaxe Ltd., stated, “Despite huge world slowdown due to the pandemic and warfare, the Indian financial system continued to shine. To additional strengthen it, the federal government has introduced in large emphasis on infra improvement and selling youth energy together with different key improvement areas on this finances. The large takeaway from the finances is the emphasis given to capital funding and a rise in its allocation by 33 p.c. Focused on infra upgradation and job creation, an Urban Infra Fund can be arrange. This is probably going to give an enormous push to the realty markets, notably in tier 2 and three cities.”

In the same vein, Vineet Taing, Chief Executive Officer, Vatika Business Centres, stated, “The Indian finances for 2023 does certainly place emphasis on the event of tier 2 and tier 3 cities, that are seen as key drivers of progress for the nation. The allocation of assets and initiatives geared toward these cities is anticipated to present a lift to their financial and social improvement, making them new hopes for progress and progress in India.”

The finances has additionally proposed a number of tax reforms that are anticipated to encourage funding within the sector and profit the center class. It has introduced appreciable leisure within the revenue tax regime which is able to assist in growing the disposable revenue of the individuals. This could lead on to a rise in demand for housing, which in flip, will catapult the residential actual property sector to new heights.

S Okay Narvar, Group Chairman, Trident Realty, stated, “This years Union Budget is future-focused on Real Estate. The improve in PMAY’s budgetary allocation by 66% to Rs 79000 crores will assist numerous Indians to realise their desires of proudly owning a house, serving to the federal government accomplish the ‘housing for all‘ goal. Furthermore, the brink for revenue tax rebates has been elevated from Rs. 5 lakhs to Rs. 7 lakhs, which is able to lead to increased shopping for energy for the center class. This transfer, geared toward offering reduction to middle-class residents, will encourage them to make investments extra in actual property. With increased disposable incomes, extra individuals can be able to purchase a house in Tier 2 and three cities, which in flip will improve housing demand and enhance the rising actual property markets.”

The change in revenue tax slabs, up to Rs. 7 lakh rebate beneath the brand new revenue tax regime has been tremendously applauded by actual property gamers as it is going to improve disposable revenue for these within the middle-income bracket and enhance client spending, which is able to immediately profit the general actual property sector.

Aman Trehan, Executive Director, Trehan Iris, stated, “With the elevated funding, the federal government appears to vastly improve the prevailing infrastructure and create a conducive surroundings for funding circulate. This will appeal to extra companies, generate extra job alternatives, and bolster the nation’s financial progress. The announcement of the rise within the revenue tax rebate restrict from Rs. 5 lakh to Rs. 7 lakh beneath the revised tax regime will considerably enhance disposable revenue and empower aspirational middle-class customers who’re pushed by aspirations when it comes to making buying selections.“

The finances offered much-needed assist and incentives to the true property sector, making it a wonderful alternative to spend money on the trade.

Business

7th Pay Commission : The wait is over, now this state also got 4% DA hike, Government’s Holi gift to employees and pensioners

7th Pay Commission : The wait is over, now this state also got 4% DA hike, Government's Holi gift to employees and pensioners
7th Pay Commission : The wait is over, now this state also got 4% DA hike, Government’s Holi gift to employees and pensioners

7th Pay Commission: Employees of Odisha state will get dearness allowance elevated by 4 p.c. Odisha Chief Minister Naveen Patnaik has introduced 4 p.c dearness allowance right now (14 March).

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7th Pay Commission: The authorities of Odisha has given a giant gift to its authorities employees earlier than Holi. Odisha authorities has elevated the dearness allowance for its employees to 4 p.c. Employees of Odisha state will get dearness allowance elevated by 4 p.c.

Odisha Chief Minister Naveen Patnaik has introduced 4 p.c dearness allowance right now (14 March). The state authorities has introduced dearness allowance for presidency employees and dearness reduction for pensioners. Now dearness allowance for employees within the state of Odisha has elevated from 46 p.c to 50 p.c.

DA can be relevant from January 1

According to the knowledge acquired from the Odisha state authorities, this dearness allowance can be carried out from January 1, 2024. Both dearness allowance and dearness reduction can be relevant from January 1, 2024. This step of the state authorities will profit 4.5 lakh state employees and 3.5 lakh pensioners.

The central authorities has given a gift of 4 p.c dearness allowance to the employees. The Union Cabinet authorized 4 p.c enhance in dearness allowance. Now employees will get 50 p.c dearness allowance. This dearness allowance can be relevant from January 1, 2024.

It can be credited together with the wage on the finish of March. A complete of two months arrears will also be added to this. This is the fourth consecutive time that dearness allowance has elevated by 4 p.c. The enhance in dearness allowance will enhance the burden on the federal government exchequer by Rs 12,868.72.

Earlier 4 states elevated DA

Earlier, Karnataka, Uttar Pradesh, Gujarat and Uttarakhand have given the gift of elevated dearness allowance to the state employees. All these states have given the gift of 4 p.c further dearness allowance. Now the employees of those states will get 4 p.c extra dearness allowance.

Minimum Balance : RBI has made new guidelines concerning minimal steadiness in checking account, can be relevant from 1st.

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Business

Modi government’s big gift to lakhs of employees! After DA, now basic salary has increased by 17%

Modi government's big gift to lakhs of employees! After DA, now basic salary has increased by 17%
Modi authorities’s big gift to lakhs of workers! After DA, now basic salary has increased by 17%

There is nice information for LIC workers. It is reported that Modi authorities has accepted 17% enhance within the basic salary of LIC workers.

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There is nice information for LIC workers. Modi authorities has accepted 17% enhance within the basic salary of LIC workers. This will immediately profit about 1 lakh workers and about 30,000 pensioners.

According to the report, this enhance, efficient from August, will value the corporate Rs 4,000 crore yearly. On March 15, LIC shares closed down 3.4 per cent at Rs 926 on the BSE.

DA has been increased by 4%

Let us inform you that this enhance has come after the latest enhance in Dearness Allowance (DA) by 50 % by the federal government. Dearness allowance of central authorities workers has increased by 4%. Let us inform you that in accordance to the suggestions of the seventh Pay Commission,

with this enhance, there may be certain to be a rise within the take-home salary bundle of the central authorities workers. According to the suggestions of the Seventh Pay Commission, cities have been divided into three classes for HRA enhance. These classes are- X,Y & Z.

If an X class worker lives in cities/cities, his HRA will enhance to 30 %. Similarly, the HRA price for Y class can be 20 % and for Z class it is going to be 10 %. Currently, workers dwelling in cities/cities X, Y & Z get 27, 18 and 9 % HRA respectively.

December quarter outcomes

Last month, LIC reported a 49 per cent rise in web revenue to Rs 9,444 crore for the third quarter ending December 2023 (Q3FY24). The nation’s largest insurance coverage firm had reported a web revenue of Rs 6,334 crore in the identical interval a 12 months in the past. Its web premium earnings increased to Rs 1,17,017 crore within the third quarter of the present monetary 12 months, from Rs 1,11,788 crore in the identical interval a 12 months in the past.

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Business

Danfoss joins 60+ governments in supporting Global Cooling Pledge

Danfoss, an business chief in vitality effectivity and local weather applied sciences have introduced its endorsement and help for the implementation of Global Cooling Pledge. Recognizing the necessity to act on cooling, Danfoss joined forces with over 60 governments and different main firms to endorse a worldwide pledge in help of sustainable cooling, launched at COP28 in Dubai.

Ravichandran Purushothaman, President, Danfoss India Region mentioned, “Energy demand for area cooling is predicted to develop threefold by 2050 if no measures are taken. Already area cooling represents 50% of vitality consumption in constructing operations and it is without doubt one of the main contributors of emissions. Implementation of Global Cooling Pledge will give a push to the collection of commitments by govts. to speed up emissions reductions from vitality use and refrigerants in the direction of close to zero emission cooling by 2050.”

Increasing temperatures, inhabitants development, urbanization and rising incomes are driving the elevated want for cooling. According to the primary ever Global Cooling Watch Report, launched at this 12 months’s COP28, cooling demand may triple by 2050. This would result in a doubling of greenhouse fuel emissions by 2050, which is equal to greater than the full annual greenhouse fuel emissions of the United States of America as we speak[1].

Jürgen Fischer, President, Danfoss Climate Solutions, mentioned, “Cooling is without doubt one of the largest societal alternatives of our time. It’s wanted all over the place to chill our meals, our buildings, and our vaccines. It brings well being, development, and meals safety for the world’s inhabitants. The commitments made by governments by the Global Cooling Pledge are a courageous step, however now we should see them take motion, implement the applied sciences available as we speak and unfold sustainable, vitality environment friendly and local weather pleasant cooling applied sciences across the globe. Action is required to restrict international warming to 1.5°C.”

District cooling: maintaining our cities cool with out heating up the planet
District cooling is without doubt one of the most promising and environment friendly methods to chill and decarbonize buildings. It sometimes saves as much as 50% of vitality in comparison with standard cooling systems1.

Anju Mary Kuruvilla, Director- Industry Affairs, Communication& Sustainability mentioned, “Innovation already exists, in the type of District Cooling options to extend vitality effectivity and using environmentally pleasant refrigerants to decarbonize the constructing sector, for creating comfy, wholesome indoor areas. This will offset the local weather change results. Global alliance of 60+ govts’ together with Danfoss and different main firms will contribute to the efforts for decreasing the carbon footprint.”

In most instances, chilled water is provided from a central, electrically powered chiller and circulated to buildings by pipelines. Thermal storage alternatives in district cooling networks allow shifting cold-water manufacturing away from peak hours and adapting to variable renewable energies. Centralized vegetation assist professionalize refrigerant administration and help the transfer in the direction of extra local weather pleasant refrigerants. From an city planning perspective, warmth islands, noise and area necessities may be averted.

Building a sustainable and secure chilly chain for well being and a greater future

Similar developments are anticipated for chilly chain and refrigeration purposes as electrical energy use is ready to develop considerably with the much-needed growth of the chilly chain to supply meals, medication, and vaccines for a rising inhabitants.

The excellent news is that close to zero emission cooling is feasible. Emissions in 2050 might be minimize by 97% with available know-how[2]: one third may already be achieved by compliance with the Kigali Amendment to the Montreal Protocol, a very powerful driver to cut back refrigerant emissions, and state-of-the artwork vitality effectivity. The the rest might be reached by stepping up actions on vitality effectivity and refrigerants, decreasing the necessity for cooling and totally decarbonizing the grid.

End customers may save $1 trillion per 12 months by 2050 on account of decreased electrical energy use. Reduced peak hundreds on electrical energy networks would translate to a discount in peak electrical energy demand between 1.5 TW and a couple of TW, ensuing in $4 trillion to $5 trillion financial savings by 20501.

“Combining excessive vitality effectivity in cooling with the transition to extra environmentally pleasant refrigerants is a really highly effective method to cut back emissions and price. District cooling and the phase-out of refrigerants with a excessive influence on international warming are simply two examples of many that may make a significant distinction. Technologies and options to cut back cooling-related emissions are already in use all over the world, and I urge the leaders behind the Global Cooling Pledge to see them into motion. Seeing is believing,” says Fischer.

Andrea Voigt, Head of Global Public Affairs, Danfoss Climate Solutions, concludes: “There’s ample proof that insurance policies geared toward phasing down excessive international warming potential refrigerants mixed with measures to extend vitality effectivity will result in tangible outcomes. Training is one other essential, but typically uncared for success issue. At Danfoss we stay up for collaborating with our prospects and governments to create sustainable ecosystems starting from {hardware} and software program options to coaching and enough insurance policies that can make the vitality and refrigerant transition a hit for all.”


Sujata

Edutech & Education

byteXL signs MoU with the AICTE, joins Government’s greater effort to enable tech skilling and bridge existing employability gap

byteXL signs MoU with the AICTE, joins Government’s greater effort to enable tech skilling and bridge existing employability gapHyderabad, 02nd August 2023: byteXL, one in every of the main IT skilling companions for Engineering Colleges in India, introduced that it has signed a Memorandum of Understanding (MoU) with All India Council for Technical Education (AICTE), a statutory physique and a national-level council for technical schooling below the Department for Higher Education in India, Government of India. The partnership settlement was signed by Mr. Sricharan Tadepalli, co-founder of byteXL, and on behalf of AICTE by Dr. Ravindra Kumar Soni, Advisor, AICTE, Govt of India. While applied by the AICTE, this settlement is a part of NEAT 3.0, a public-private partnership mannequin between ed-tech firms and the Government of India. Neat 3.0 was developed by the authorities to be a single, unified platform to present the best-developed ed-tech options and programs to college students in the nation.

byteXL, with experience in the edtech house, will probably be a part of the Government’s advisory board and will participate in discussions and advocate options in tech skilling. Having partnered with 100+ schools throughout 7 states in India, the firm has a robust connection with the schools on-ground throughout tier I, II, and III cities and has a robust grasp of the school’s particular person wants and requirements. byteXL will leverage its experience in rising applied sciences to provide e-learning programs and their trade specialists with a purpose to make tech skilling accessible to all. The firm can even share its options on updating the curriculum growth and on inculcating programs attuned to the wants of the Tech Industry.

The goal of NEAT 3.0 is to bridge the digital divide and make skilling extra accessible to all college students, no matter their socio-economic background. Currently, the NEAT portal comprises 100+ programs and e-resources for all college students for rising their studying outcomes, make them extra employable, and facilitate in data sharing.

“We are honored to accomplice with AICTE and be a facilitator in the authorities’s greater mission to make skilling in expertise accessible and inexpensive to all. NEAT 3.0 is a superb initiative to bridge the existing employability gap and a really obligatory step at the proper time by the Government to faucet into the sources edtech firms can present and scale it at a a lot increased stage. byteXL has labored in the previous three yr to ability college students in rising applied sciences and being a part of this AICTE’s advisory board will assist us to leverage our experience and present insightful options for the betterment of all college students particularly in the transformation of the curriculum that wants updation,” stated Mr. Sricharan Tadepalli, co-founder of byteXL.

byteXL is at the moment skilling over 1.2 lac college students in over 100 institutes in Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan, and Delhi NCR.

Key Highlights

  • byteXL signs MoU with AICTE joins the authorities’s greater effort to enable tech skilling and make it extra accessible to all.
  • This settlement is a part of Neat 3.0, a public-private partnership mannequin between edtech firms and the Government of India
  • byteXL will deal with rising the college students’ technical capabilities with a particular emphasis on new and rising applied sciences
Edutech & Education

Integrated Approach to Local Governments: A Study on Vertical Collaboration

New study offers insights into the importance of vertical collaboration with the higher government for the sustainable functioning of municipalities.

The traditional recourse to improve the efficiency of municipalities has been to strengthen inter-municipal cooperation. In an effort to maintain the autonomy of these local governments, building relationships with higher governments have largely remained under-surveyed. In order to address this issue, Prof. Yu Noda from Doshisha University, Japan, has undertaken an exploration of the potential of building better vertical relationships with data from Japanese municipalities and found that it led to more benefits.

One of the major hindrances to the functioning of local governments is the lack of sufficient funds. Therefore, fiscal efficiency is the foremost factor that determines the productivity of a local government.

In a new study published first on October 25, 2022, in the journal Public Administration Review, Prof. Yu Noda from the Faculty of Policy Studies at Doshisha University, Japan, examined waste management—a capital-intensive service—in the local municipal areas in Japan as an example of how “vertical” collaboration with higher governments can help local municipalities achieve efficiency in administrative functioning.

Fiscal efficiency in the local governments can be achieved through collaboration, which helps in mitigating risks and gaining benefits. Now traditionally, this collaboration has been fostered with other regional municipalities because of the already existing trust and cooperation engendered over time among such bodies. These are psychological factors that enable smooth functioning of the municipalities. Such a “horizontal” collaboration is fiscally sound because it reduces transaction costs.

Horizontal relationships in the form of contracted services also help to improve service quality. With the foundation of strong trust and ties across municipalities, contracted services ensure greater benefits. They enable a smooth, organic integration with low political costs. Although it dilutes autonomy of the local government to some extent in terms of managing services in the region, it can still hold the reins of regional governance by deciding the manner of integration with such services.

In addition to the horizontal collaborations, this study explains the importance of another aspect of this integration—a “vertical” collaboration with the higher governments. “Democracy is based on the autonomous policy-making of local governments, but for fiscal efficiency, the appropriate involvement of higher-level government is rather crucial. As taxpayers pay taxes to both basic and higher levels of government, we need to reassess and monitor the division of roles between them,” says Prof. Noda. This vertical collaboration was found to accrue more benefits for the municipalities. Even though the transaction costs were found to increase, the overall benefits arising out of this collaboration more than made up for the rise in transaction costs.

It was believed earlier that municipal cooperation alone would be sufficient to overcome fiscal problems. However, this study demonstrated that both vertical and horizontal relationships are required for the better functioning of local governments. The study also found that establishment of special district governments improved the efficiency of municipalities by enforcing fiscal distribution. But, collaborative benefits, including such efficiency, were higher when there were better horizontal ties within the regional government.

While the horizontal collaborations increased the municipal capacity to solve regional issues, vertical collaboration led to a more efficient and integrated approach. Horizontal collaborations can only help to a certain extent. When severe financial difficulties strike, help from the higher government becomes necessary. “In 5 or 10 years’ time, municipalities may be facing more financial difficulties, and in such cases, not only inter-municipal cooperation, but also appropriate commitment from higher level governments such as prefectures and the national government could increase the financial efficiency of the municipalities,” explains Prof. Noda.

This study offers novel insights into the importance of establishing vertical relationships, an area that has thus far largely been ignored. This research will pave the way to a sounder-working ecosystem of local governments in the future through an integrated framework.